Income tax revenue increased by 28% in August 2021

Intelligent Economics > Analysis > Income tax revenue increased by 28% in August 2021
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Puerto Rico General Fund revenue reached a total of $675 million in August 2021. Compared to August 2020, revenue increased by $43 million, or 6.9%. Compared to the previous month of July, revenue decreased by 15.7%. The revenue category that had the largest increase relative to 2020 was income tax. Income tax revenue increased by 28%, with a notable increase in individual income tax revenue, which itself had a 24% increase.

Tariff revenue had a decrease of $39 million, or 15.3% when compared to August 2020. Most of this was due to a decrease in Act 154 revenue. This revenue decreased by $44 million, or 31%. Act 154 revenue for the year to date is at $1.311 billion. Compared to 2020, this is down by $71 million, or 5.2%.

Sales tax revenue for the month of August was $122 million. Compared to August 2020, this was an increase of $23 million, or 23.3%. Sales tax revenue for the year to date has reached $1.749 billion. This total is 56.4% higher than in 2020.

Despite these increases relative to 2020, revenue is still down compared to 2019. Compared to August 2019, revenue was down by $98 million, or 12.7%. Revenue for the year to date is down $844 million, or 9.6%, compared to 2019.

This decrease in revenue relative to before COVID is indicative of the lack of economic recovery so far on the island. Increasing gas prices and ongoing supply chain issues on a global scale could further delay global recovery, which will undoubtedly affect the island’s economy and government revenue.

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